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Suppose that a firm, in the short run, generates revenues of $1450 a month and the firm's total variable cost of production is $1700 and
Suppose that a firm, in the short run, generates revenues of $1450 a month and the firm's total variable cost of production is $1700 and the firm's sunk cost is $1100.The firm should
(a)Shut down since the firm's revenues exceeds the firm's sunk cost.
(b)Shut down since the firm's revenues fall short of the firm's variable cost of production.
(c)Not shut down since the firm's sunk cost falls short of the firm's variable cost of production.
(d)None of the above.
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